In times of financial hardship, it can be difficult to face the truth: bills may be difficult or impossible to pay, and you need help. The first step is to realize that you need to take control. Getting behind on payments or failing to pay each month can result in bad credit and foreclosure of your home. Loan modification may be an option for you. Loan modification helps borrowers who are facing financial problems work with their lender to change the terms of their mortgage loan to make it affordable.
Those that are unable to make monthly mortgage payments have the option to request a loan modification. In the event of a loan modification, the bank will give you any one of the following: an extension to a 40-year term, temporary or permanent interest rate reduction or a balloon payment, which is a large payment due at the end of a mortgage or loan. However, if you are still able to make payments, you will most likely be denied by your bank unless you stop making payments and risk foreclosure of your home.
But you have options. In the case that your bank denies you loan modification, speak with them about other options you may have. Refinancing may be one. This allows the homeowner to switch to a fixed rate or a lowered monthly payment. This is a great option if you are current on mortgage payments. If you’re behind, ask about a repayment plan. This helps you catch up until your finances are back in order.
Whatever your situation, discuss with your bank as soon as possible. They may be able to recommend the best options for you and your family. Also, if you aren’t sure what your best options are, help is available. Stephen K. Hachey, a Florida loan modification attorney, that can help you navigate this process and make the most of a difficult situation. Contact him at 813-549-0096.